The main purpose of this study is to use Advocacy Coalition Framework (ACF) and document analysis method in order to explore the process of policy formation of national university corporatization in Japan from 1996 to 2003. It is concluded that in the background of economy bubble collapse in 1990s, strong public opinion for reducing numbers of public servants, increasing power of prime minster and economy-related authorities, Ministry of Education, Culture, Sports, Science and Technology (MEXT) and the Japan Association of National Universities (JANU) changed their policy believes through giving up second aspects and policy-oriented learning. Also, the author concluded that national university corporatization, as an old issue, had been discussed for a long time in Japan’s open political system and carried out through a plenty of compromises in this policy process. At last, due to regime changes in the last decade, faculty’s resistance to change of personnel matters, and new agenda about university merge, the author concludes that it will take time if the Taiwanese government insists on pushing the same policy.